The Road to end Free Markets

Congress is tripping over themselves to give the Fed more power to tinker with the economy. The so-called free market and financially smart Republicans have turned there back on the Milton Friedman's lassiez-faire economic policies that so many claim to hold to. The Democrats are in line to play a little one-up-manship to take the regulation as far as they possibly can.

Why can't we accept recessions as a normal part of life, as a healthy shake out, as way the invisible hand disciplines the ignorant the greedy. Congress reminds me of the parent who won't allow a child to feel the weight of the consequences of their choices and then can't figure out why the child is such a loser when faced with life on his/her own.

Nuts and Bolts of It

Look at the Inverse Head & Shoulders pattern on Fastenal Co. (FAST). According to the pattern it should move up to $55 in the next 5 months. Terrific volume confirmation with the MACD lows moving higher gives great confidence in this trade.

The "NEW" Retirement Plan

Here is an article on the new, up and coming whiz kids that will be changing the face of the internet and technology. I think you can use this information to start breeding your next new whiz kid and set yourself up for life and your retirement. Just think, if you have 2 to 4 kids, you could have a wealth of money by the time they are of age. There is another article that says you can teach your kids to be a millionaire and be rich. Think about, who better to exploit than your own flesh and blood.

Fed Speculation

The market is rallying this morning in anticipation of the Fed announcement. This kind of excitement tells me anything less than a full point will disappoint and probably lead to a sell off. Of course another interest rate cut in front of today's inflation news seems foolish to me. It supposedly takes 6 months for a cut to take affect. Cutting rates won't make banks lend money. Cutting rates won't raise consumer confidence. I sure miss Reagan's strong dollar policy that fed the markets through 1980-90s creating one of the largest bull markets the country has ever seen.

JPMorgan Calls in Bears' Note

Last week the Fed created a new program allowing large banks to provide liquidity to other financial institutions. JPMorgan (JPM) then took Fed money and loaned it to Bear Stearns (BSC) for the outlined 28 days. JPM decided to just go ahead and buy out Bear Stearns over the weekend in a very interesting move. JPM has certainly been harmed by the credit crisis too but, the diversity of product and overall size puts them in a position to expand.

Fed's Sunday Surprise

The Fed cut the discount rate today instead of waiting all the way to Tuesday when they will most likely cut the overnight rate another half a point. Finally some are saying enough is enough. That's what we were saying at the end of last year when the Euro was only 1.25 of the dollar.

What will change the world first, Communciation or Transportation.

Last month we saw the man who changed the world, Mr. Bill Gates, predict the end of the keyboard. Now he is forecasting large leaps in future technology along the same lines in voice recognition and touch screens. These are very exciting but they won't change the world like we have seen in the past. In fact, with today's commodity markets the advances that will change the world will be those that find greater efficiencies in fuel or fuel alternative. Looking throughout history those inventions that improve the way products are moved to trade and sell effect commerce the most. Taming of animals, the wheel, animal drawn wagons, boats, rail roads, steam engines, cars, trucks, airplanes, jets, speed train, etc. I would be looking f0r a company more like Orbital Sciences Corp. (ORB) to change the world this next time around versus Microsoft (MSFT). I'm interested in some discussion and debate, please feel free to comment.

Geordi Goggles

NASA has been working on JORDY glasses for some time, now Japanese scientist have now developed another set of glasses for the memory impaired.

EURO GONE WILD

Not to be mistaken or associated with the all to well known similar oo-mox title with "wild" in its heading (guys, you all know what that is about from those late night info-mercials), the euro has now hit the target on a ascending triangle formation (as seen below.) It has run and made a 700 pip move and what a move it was.

Now that it has made the predicted move I am starting to see a possible pull back down to a support level. I am not sure if it will pull back to 1.4900 or 1.5000, but it may pull back to a 1.5200 if it does. Currently, anything trading against the dollar seems to be the best bet to trade and may be the case for a while to come. It is hard to see this because I think the Fed and the administration wants the dollar to stay down. I like to think there is a method to their madness but for now, my ferengi oo-mox is trading against the dollar for now.

~G

I thought Gore invented the Web?

Maybe Al Gore didn't invent the web, but I'm pretty sure he invented Global Warming. Well, no one really knows, the real inventor has been lost forever. Check out the new technology that might make Google obsolete according to Tim Berners-Lee the so called "real inventor" of the internet.

Recession Double Talk

Currently we see financial mavens claiming a recession won't occur, will occur, we are already in a recession, etc. Last week the President spoke concerning the economy prophesying a recession won't happen. He may be correct not because the economy will return to gang-buster growth, but because of the definition of a recession.

A recession is defined by two consecutive terms of lower growth. If we see GDP at 5% than 4% than 3% we would say we're in a recession. What if we are at 5% than 3 % then up to 3.5% back down to 2.9%, is that a recession? According to the strict definition of a recession the answer is no. Now, what if we are at 5%, then 2%, and then grow to 2.01%, 2.02%, 2.03% and so on. Technically it isn't a recession but the economy sucks royal!!

If we had a real leader, and believe me no one on either side of the aisle fits this bill, they would warn people of economic slow down and preparation instead of the Recession Double Talk we are getting now.

****Spitzer Alert****

This just in!!! A new picture has surfaced on Spitzer!! See for yourself. I think it looks real. Don't you???


You Be The Judge!!

Innocent till proven guilty but he may get a piece of his own medicine. Payback is a @#$%&! But you really can fault a guy in getting his oo-mox on, right???

CLIENT Number 9

If you have been under a rock today or haven't been able to read the news headlines today, you have missed the next new episode of Law and Order. You really can't make up this stuff some times and people really don't think things through no matter how smart they are.

Governor Elliot Spitzer of New York City is on the verge of resigning today because he was caught in a prostitution ring sting. He just talked with reporters about how he needs to work on and focus on gaining his families respect and trust back. Well, that may be difficult since he was such a "defender of truth" in his prosecution days.

Many on Wall Street, you can hear cheering and possibly chanting "ding dong the witch is dead!" I think he will need to resign his post as governor of NY in his 345th day of governorship.

Spitzer and the Witch from Wizard of Oz (Don't they seem similar?)

How can he think that he could get away with it being in a club called the Emperors club that sets up these prostitutes for high net worth clients. Also, on one of the busiest days of the year when individuals cheat on their spouse and government monitoring of this day for those cheats, February 13th (day before valentines day), you would think that this guy would know better. I guess that is why some in New York got the feeling that he had the "god" complex or untouchable air about him. I don't know him but this isn't good and must go down in a idiot-in-charge stupidity.

Again, there must be someway to make something off of this event. That is just how good Ferengi's think. I know others will. It is too bad but I think that all those that have been wronged by this guy, should have some fun and reprocussion on. All is fair in love and money!!! Have fun you Wall Street guys!!!!!!! Law and Order writers, you have an easy script here. Have some fun with it too.

My EUR/USD Trade

Ok, so the Dollar keeps on getting hammered and the Euro just keeps on going up higher and higher. As you know, I have been bullish the Euro for a little while and have been doing well since 1.4600 on the pair. I was bearish for a short while but ended up going long again and set up a limit sell order at 1.5450 if the pair just shot up. Well, it shot up and I got out of my position at 1.5450 because of my order I had set up on it. I am a happy camper with all my latnium.

Going forward, I still see some bullishness around it as the dollar still weakens. There is talk now of the Fed possibly having an emergency cut because of the markets. I can't see it helping much and only postponing the inevitable. I definitely think that we are in a recession and even though we are no where like the 1920s, it still is a for of recession. In a article that is from 2006 on when recessions may have happened in the past, goes to show that we may be in a small one right now. This article goes into some good information on the make up of these recessions.

Now, my Ferengi side tells me that there is money(latnium) to be made in this time of crises. And that is what I am doing. I just have to be against the dollar till there is something that convinces me that it is turning around. Who know, maybe the dollar will become the new currency carry trade. Remember, making and getting latnium is the" true" oo-mox experience!!!!

We Need Food Synthesizers

The time is fast approaching where food synthesizers are needed badly. Look at this article on the soaring cost of food. The beauty of capitalism is that times like these prompt invention and innovation, especially when the need is so high. Of course there is always some profit to be made just look at the Powershares Agriculture (DBA) ETF index. Be warned, and I shouldn't tell you this because the Ferengi are not responsible for other peoples' ignorance and stupidity, but the seasonal cycles for grain tops out in what is called the February Break. Since the index rallied through February, we are long overdue.

Diana Shipping Inc. (DSX)

Diana Shipping Inc (DSX)


So, Bajoran Profit has been busy lately being a producer of some sorts and so asked me to post this information on Diana Shipping Inc. I am sure that he will be writing more on this position later.

DSX currently has a peg ratio at .74 and a dividend yield over 8% and has recently bounced off a good support level. There could be a return to a $32.50 level and then on up even higher. These are my thoughts but Bajoran Profit can speak for himself.

As for me, I am going to get some more latinum and have a party with my last trade on the Euro. Nice run and still running. The pullback never emerged but that is ok, I am still bullish. I see it going to 1.5450 at this rate. With the large ascending triangle that it made, this 500 pip move is possible. I am keeping my stops semi tight on the way up just in case some econo-nerd from the fed or government says something to pull it back. We will see.
- oo-mox

Hostile take over of Germany

Now is the time to invade and take over Germany! We could all be driving BMWs and Volkswagens before the week is out.